Millionaires understand that it’s the reinvestment of money that makes the big money. Money invested wisely multiplies itself. To put it simply: Money makes money.
This is a key difference that sets millionaires apart from the average person. Millionaires invest their money and spend what is left, whereas most people in society spend their money and invest what is left – and that’s the wrong way around. In fact, that’s a good way to remain broke, as it’s far too easy to spend everything and not have anything left to reinvest.
One of the best things you can start to do now is to decide on a certain percentage of your income that you will reinvest regularly. Make that the minimum amount, and then, say, if you have an unusually good month invest even more. Make a commitment to yourself that this money is already earmarked for reinvesting – for growing your wealth – and is not to be spent on other things. Otherwise it is far too tempting to use it to buy the latest high-tech gadget you saw advertised.
Make reinvesting a habit and the rewards will be great. It is a powerful way to move you towards your goal of becoming a millionaire It’s also important to understand that wealth is not fairly distributed based on who deserves it. You won’t ever become wealthy by selling your time for money – at least you won’t attain any truly big wealth. Wealth is also not something you should ever feel guilty about making.
A lot of people feel guilty if they make more money (relatively speaking, considering inflation) than their parents did. And this type of guilt will really trip you up in your quest to become a millionaire. It is a self-limiting belief that can easily become a self-fulfilling prophecy. So if you’ve got that kind of belief system going through your mind frequently, or deeply ingrained in your values, you will really need to change it as soon as possible in order to become wealthy.
You can overcome it by choosing an appropriate affirmation to replace it. You must begin to reprogram your mind to where you truly believe that money is actually a good thing. If you want to become a millionaire it is essential that you believe that becoming as wealthy as possible is actually a healthy and natural thing to do.
Money is not evil – it is not the root of all evil. Sure, people can and have throughout history used money at times to fund evil things that harmed individuals or society as a whole. It certainly took a significant amount of money to fund and pull off the terrorist attacks that occurred on 9/11. But, that is the extreme exception.
Wealth is not a bad thing; it is not an automatic reflection of greed or selfishness. If those are your thoughts then it is time to change them to begin thinking of money as a good thing. As something that can open doors, create opportunities, give you more freedom to do good things, and to allow you to significantly help others and the world in general.
Millionaires recognize that money is good because it is a payment for clever thinking and wise leveraging of one’s time. So they continuously reinvest money to make money. They fully understand the concept of making their money work for them – as money makes money. It’s a mathematical thing.
Keep in mind, at the lower levels you may start out getting paid for your time – just about all of us have to do that. But even if you are being aid for your time working for someone else, it is essential that you always set aside some of your income and reinvest it. By doing so you allow your money to multiply itself – over and over and over.
Leveraging your time means that you’ve got to pay other people to do things for you – things that aren’t a good use of our time. Most millionaires have their own businesses. They don’t try to run them all by themselves – rather, they pay people – their employees – to do the majority of the work for them. I have 8 companies and 35 staff – if I tried to take care of everything myself my companies would quickly suffer – not to mention I certainly couldn’t have grown my business to that level by myself. Part of reinvesting my money was to hire others to do work I couldn’t do myself – either because I lacked the time or the skill – or to do work I didn’t like to do so I could put my energy and enthusiasm into what I enjoy the most – as that is also what I do the best.
Remember when I was still a student at university just starting out with my internet business, I hired another student to work 10 hours a week for me. And then I hired several more as my business grew. Believe me, as a kid in college I could have easily spent that money on fun things instead. I also could have continued to do all the work myself. But I realized that the smartest thing – clever thinking – was to put that money right back into my business – reinvesting it - and pay others to do some of the work. I wisely leveraged my time early on, and that helped me to become a millionaire.
If you don’t reinvest your money at the start then you absolutely want to do it as soon as you have any money to spare. I can’t emphasize this enough. You must reinvest money to make money. That’s how true wealth – the big money - is made. And every millionaire I know understands this and does this.
When I say reinvest, this can be into things such as the stock market or similar types of investments. However, I personally believe that the ideal way – the best way if you want to get a high return on your money – is to simply reinvest your money back into yourself and your own business.
If you’ve got an internet marketing business like me, you can reinvest your money back into things such as getting more of your money making websites set up, getting more traffic to your websites – basically focusing on those four areas discussed earlier - leads, conversion rates, dollars per customer, and transactions per customer.
If you’re in another type of industry, there are countless ways in which you can reinvest your money back into your business – hire more staff to do tasks that you don’t like doing or don’t have time to do; hire a consultant to help you improve your business in different areas; move your business to a better location; expand your product line; develop new products; and so on.
As long as you are reinvesting your money wisely, it will continue to grow and bring
you that much closer to reaching millionaire status!
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